OKX EXEC warns against hype in the middle of the real-world asset tokenization boom

The CEO of Crypto Exchange OKX for the arm of the Middle East and North Africa (MENA) has encouraged the crypto industry to focus on delivering real-world utility as interest to real-world assets (RWA) tokenization accelerates.

In an interview with Cointelegraph in the event of token20249 in Dubai, the OKX Mena CEO Rifad Maasneh warned that while tokenization promises, projects should “clearly show” the benefits of tokenizing specific property.

“In some cases, we have to deal with things that don’t require tokenization, but in some cases, we are motivating things that really give you real, day -to -day value, right? And if you see the day -to -day value, then that’s a promising project,” Maasneh told Cointelegraph.

The executive said that, like other industries, the hype could drive project growth in the web3 space. However, the executive on cointelegraph said that the provision of day -to -day value should be priority.

RWA tokenization gets traction in the UAE

Maasneh’s comments came amidst the rise of real-world tokenization projects in the Middle East, including the United Arab Emirates.

On May 1, Multibank Group signed a $ 3 billion agreement with RWA Using the UAE-based firm real-estate mag and blockchain infrastructure provider Mavryk-the world’s largest initiative in the world to this day.

In addition to billions of RWA deals, the UAE government began working on RWA tokenization. On March 19, the Dubai Land Department – the government agency responsible for advancing, organizing and registering real estate in Dubai – announced by a pilot phase of its real-estate tokenization project. The agency works with Dubai’s Virtual Assets Regulatory Authority (VARA), the Emirate’s crypto regulator.

On January 9, the RWA Project Mantra also signed a $ 1 billion Deal with the Damac Group to token a conglomerated property based in UAE. However, months later, Mantra saw one of the largest tokens that collapsed in crypto history, Wiping Billion -Billions in market capitalization on April 13.

Maasneh told Cointelegraph that the region’s clear regulations are pushing these moves from larger institutions to enter tokenization and crypto. OKX Mena CEO said clear regulations allow players to understand how major players in space, such as exchanges, are managed by reading the rules set by regulators.

Related: Real Estate Not the best possession for RWA tokenization – Michael Sonnenshein

UAE stablecoin framework gives confidence in institutions

The executive also praised the region’s development of stablecoin regulations. In June 2024, the central bank of the UAE A regulation framework has been approved For licensing of stablecoin. It clarifies the release, administration and licensing of payment tokens supported by Dirham.

According to Maasneh, it shows the speed of the UAE in regulating crypto-related technologies. The executive also featured that the participation of the Central Bank provides institutions of excessive confidence in entering into the business.

“Other markets are still arguing whether they should have crypto regulations. Here, we move on to the development of Stablecoin regulations. For an investor, you want to know that your stablecoin is controlled. That’s a big plus,” Maasneh said.

Since then, major players like Tether joined the career in The release of a dirham-pegged stablecoin. On April 29, institutions such as Abu’s Sovereign Wealth Fund Launch a Dirham-Pegged Stablecoinpending regulation approved.